NAR Joins Calls to Extend Terrorism Risk Insurance Act

September 18, 2019

The National Association of REALTORS®, along with more than 100 insurance and other organizations, are urging Congress to pass a long-term reauthorization of the Terrorism Risk Insurance Act, which is set to expire at the end of 2020. The bill creates a federal backstop for terrorism insurance and mandates that insurers make terrorism coverage available with their property and casualty lines.

TRIA was originally enacted in 2002 as insurance companies backed out of the terrorism insurance marketplace following the Sept. 11, 2001, terrorist attacks. Congress has enacted several extensions to the program since that time. In 2015, the program lapsed for 12 days, sparking uncertainty in a variety of markets. The program is facing another expiration at the end of next year that has industry groups concerned.

“TRIA fosters certainty in the marketplace,” states a letter from the Coalition to Insure Against Terrorism urging Congress to support an extension of the bill. “Absent TRIA, there is not sufficient insurance and reinsurance capital available to provide comprehensive terrorism coverage to U.S. insurance buyers.”

In the letter, the organizations urge Congress to promptly enact a long-term extension of the program. “Maintaining a workable federal terrorism insurance mechanism is vital for our nation’s economic security, and without adequate coverage, our ability to mitigate further economic fallout in the event of an attack would be greatly impaired,” the letter states. “There is no homeland security without economic security.”

Source: 
REALTOR® Magazine